Skip to main content
Don L. Rosenberg
Avvo
Pro

Don Rosenberg’s Legal Cases

2 total

  • CRISIS PLANNING FOR MARRIED COUPLE WITH HOME AND $700,000 IN ASSETS.

    Practice Area:
    Elder law
    Outcome:
    Saved All of Married Couples Assets
    Description:
    1. CRISIS PLANNING FOR MARRIED COUPLE WITH HOME AND $700,000 IN ASSETS. Both Bob and Mary are living in assisted living. It is literally a race to the nursing home. Mary wins race, is hospitalized and then is admitted to Nursing Home. Assets: Home and adjacent land; $300,000 Savings bonds value including accumulated interest $400,000 Bank accounts $200,000 Husbands IRA $ 50,000 Other investments $ 50,000 TOTAL $1,000,000 Income: Husband’s monthly income is only $ 900 Wife’s monthly income is $3,300 Wife’s nursing home monthly cost of care $7,000 Husband’s assisted living monthly cost $4,500 RESULT WITH NO PLANNING Bob would be left with home and land and $100,000 in assets in 52 months. SOLUTION WITH PLANNING: IMMEDIATE ELIGIBLE FOR MEDICAID -Home and adjacent land is a protected homestead. Home is eventually transferred into the husband’s name to avoid estate recovery and then husband establsihes a lady bird deed for the benefit of the children. -Petition to Probate Court to increase the monthly income allowance of Husband to include ALL OF THE INCOME OF THE WIFE so that he can continue to afford to pay for his assisted living. -Husbands protected spousal resource allowance (PSRA) is up to 50% of the total countable assets up to approximately $109,560. In this case 50% of $700,000 is greater than the maximum therefore the PSRA is $109,560. -Establish Trust for the Sole Benefit of the Community Spouse (husband) and transfer approx. $600,000 of the countable assets which includes the bonds to Trust. This trust is not a countable asset for Medicaid and will pay the assets to husband over his life expectancy or less. The SBO Trust uses the grantor’s social security number. THIS SOLE BENEFIT TRUST CAN WORK FOR ANY SIZE INVESTMENT PORTFOLIO ACCOUNT and CAN HOLD TITLE TO REAL ESTATE.
  • CRISIS PLANNING for Single Person with Assets

    Practice Area:
    Elder law
    Outcome:
    Protection of Assets
    Description:
    CRISIS PLANNING FOR SINGLE PERSON WITH HOME AND $300,000 IN ASSETS Bob age 62 individual with early onset Alzheimer’s needs nursing care. Assets: Home worth $250,000 Investments $175,000 Bank Accounts $ 50,000 IRA $ 75,000 TOTAL $550,000 Income: Bob has social security and pension of 2,500 a month Bob’s cost of nursing home care $6,500 a month. He is short $4,000 a month. RESULT WITH NO PLANNING: BROKE IN 75 MONTHS Bob would be left with home (with no way to pay for the taxes, insurance and upkeep unless he rents it) and $2,000 in assets in 75 months or at age 68 he is broke. SOLUTION WITH PLANNING: SAVED $246,000 AND ELIGIBLE FOR MEDICAID IN 29 MONTHS -Home is protected and home does not have to be sold. In addition the adjacent land is also protected as part of the homestead. To avoid potential estate recovery on the death of Bob a Lady Bird Deed is executed in favor of his children. With the remaining $300,000 Bob gives a gift to his children in the amount of $183,000 and places the remaining monies of $117,000 in a non-countable Short Term Immediate Medicaid Compliant Annuity or Medicaid Compliant Irrevocable Promissory Note or a Special Needs Pooled Income Trust. Anyone of these will pay $4,000 a month for 29 months. Once these transactions are completed we apply for Medicaid and Bob is disqualified for 29 months for Long Term Medicaid and approved for Medical Medicaid immediately. On the 30th month Bob contributes his income less a few set offs to the Nursing Home and Medicaid pays the balance. The ½ or 2/3'rds a loaf planning can be applied to any portfolio account not requiring more than 60 months of private pay.